Energy Security Board

Overview of the Energy Security Board

In August 2017 a new Energy Security Board (ESB), chaired by Dr Kerry Schott AO, was established by the COAG Energy Council. The Board’s role is to coordinate the implementation of the reform blueprint produced by Australia's Chief Scientist, Dr Alan Finkel AO.

The ESB will also provide whole of system oversight for energy security and reliability to drive better outcomes for consumers. The ESB comprises an Independent Chair, Independent Deputy Chair and the heads of the Australian Energy Market Commission, Australian Energy Regulator and Australian Energy Market Operator.

The ESB reports to the COAG Energy Council. Each year the ESB will deliver a Health of the National Electricity Market report to COAG Energy Council that will track the performance of the system, the risks it faces, and the opportunities for improvement. The first report is due to be published by the end of 2017.

The Terms of Reference for the ESB can be found here.

National Energy Guarantee

In October 2017 the ESB provided the COAG Energy Council with advice on changes to the National Electricity Market (NEM) and legislative framework. The proposed National Energy Guarantee (the Guarantee) aims to support the provision of reliable, secure and affordable electricity with a focus on ensuring:

  • the reliability of the system is maintained

  • electricity sector emissions reductions needed to meet Australia’s international commitments are achieved

  • the above objectives are met at the lowest overall costs.

Detailed Design Process

The ESB’s high level design proposal for the Guarantee was presented to a meeting of the COAG Energy Council on 20 April 2018. It was agreed for the ESB to progress development of the detailed design of the Guarantee, for determination at the COAG Energy Council’s August 2018 meeting.

High-level Timeline

Week of 21–25 May

Technical Working Group meetings

Mid-June

Technical working papers and draft final design document released for public consultation

August

COAG Energy Council meeting and Final Detailed Design of the National Energy Guarantee

September Consultation on National Energy Guarantee Legislative Amendments

 

Consultation paper for draft design of the Guarantee

On 24 November 2017, the COAG Energy Council agreed that the ESB should provide further advice on the Guarantee. This was provided in April 2018, after broad consultation. On 15 February 2018 the ESB published a consultation paper for the draft design of the Guarantee. This consultation paper was prepared by the ESB to facilitate public consultation on the high-level design of the proposed Guarantee and to seek stakeholder submissions. 

More information on the consultation paper can be found here.

Recent Energy Security Board announcements

Energy Security Board Consultation on ACCC Recommendation 6 & 7 - 28 Sep 2018

Energy Security Board Converting the ISP into action - 21 Sep 2018

National Energy Market Data Strategy Consultation Paper - 20 Mar 2018

Health of the National Electricity Market Report - 20 Dec 2017

Report on the National Energy Guarantee - 24 Nov 2017

National Energy Guarantee modelling – 27 Oct 2017

Energy Security Board: Ministerial power to make rules – 18 Sept 2017

Media release: Establishment of the Energy Security Board – 8 Aug 2017